S.B. No. 841 amends the Texas Property Code to clarify the beneficiaries of trust funds related to improvements on specific real property. The bill specifies that individuals such as artisans, laborers, mechanics, contractors, subcontractors, or materialmen, as well as their qualified assignees, are considered beneficiaries of any trust funds paid or received in connection with such improvements. This change replaces the previous language that did not include the mention of qualified assignees.

Additionally, the bill introduces a new section, 162.0031, which outlines the conditions under which a beneficiary can assign their interest in unpaid trust funds. The assignment must be made in writing after the assignee has compensated the beneficiary, cannot be part of the construction contract, and requires written notice to the property owner and contractor within seven days of the assignment. This aims to ensure transparency and protect the rights of all parties involved in construction or repair projects. The act is set to take effect on September 1, 2025.

Statutes affected:
Introduced: Property Code 162.003 (Property Code 162)
Senate Committee Report: Property Code 162.003 (Property Code 162)
Engrossed: Property Code 162.003 (Property Code 162)
House Committee Report: Property Code 162.003 (Property Code 162)
Enrolled: Property Code 162.003 (Property Code 162)